5 Ways To Save On Auto Insurance For Young People by F. Cheshire

Whether you are the parent of a teenager that is just itching to get their car on the road, or you are a young driver that will e paying for everything yourself, then pay attention to the following secrets to saving on insurance costs. Everyday after school, Bobby would come home and wash his car in the driveway. He cared for his little red firebird like it was his newborn baby. Every square inch was pampered, the chrome shined like a mirror & the tires glistened with armor-all. The funny thing is that Bobby hasn't been able to actually drive his car yet. You see, Bobby made a common mistake that many new drivers make. They make their purchase decisions based on their car payments alone. They spend all of their paycheck on a car payment, without ever thinking about how the insurance will effect their budget. And so there it sits in the driveway like an expensive lawn ornament, until Bobby can afford the insurance payments or would maybe have to end up selling it. How about you? It comes down to this. If you are a new driver, you need to know that your insurance payments will be affected by the following items:

1- What kind of auto will you be getting? What year is it and what model is it? I know that everyone wants a "fun" and "fast" car when they are young. Unfortunately, "fun and fast" cars statistically have more accidents than "boring and safe" cars! If you want a 2 door sports car, then be prepared to pay a lot more than if you would be getting a 4 door minivan.

I know that's not what many of you want to hear, but it's the truth. Here is a money saving suggestion: Before selecting a car to buy, call your insurance agency and ask them to price the 3 autos you are thinking about. The cost of the insurance payments may actually help you to make your mind up about which car to invest in.

Here's a quick story: Recently, a young 18 year old friend of the family told me that had his heart set on an older red BMW 2-door. However, at the last moment he decided on another vehicle. What happened?

It seems, he took this advice I just shared with you. He told me the red BMW insurance monthly premiums were almost twice the cost of the other cars he was looking at. 2- Are you a safe driver? Are you a speed demon and do you view traffic rules as suggestions? If you insist on speeding,running red lights, driving too closely and think nothing of drinking and driving, then prepare to pay a high price for the privilege of an insurance policy.

If there is only one thing that you take away from this article, it should be that the driving habits you develop as a young person will dictate how much you spend on your insurance for the rest of your life. Make it a goal to be a safe driver and you will be glad you did the next time your coverage is renewed.

3- Choose a higher deductible than you normally would. Are you willing to accept the risk of paying for the first $500-$1000 worth of repairs? Then you will have a lower monthly insurance rate then if you chose a zero or a $250 deductible.

This really isn't rocket science... pay more monthly now or take the chance that you won't have to pay it later. 4- Stop making claims on every little nickel & dime repair for your car. Instead of turning in that $75 window chip, why not just pay for it yourself? You'll be glad you did when your policy comes up for renewal. 5- Don't be afraid to ask the insurance agency if any discounts are available for you to take advantage of. Did you know that by taking a drivers education class in school you could save money on your insurance? In fact, additional defensive driver courses are available for you to invest in too. Sure, you will have to pay for these out of pocket, but you will enjoy the discounts forever.

Why not pick up the phone and talk to your insurance company now to find out what additional discounts are available for you? Yes, there are additional things that impact your insurance rates, many of them of which you have little control over. In fact we will discuss these in a future article on our blog. However, as discussed here there are quite a few things that you can control. That is why it is important to educate yourself about the choices you do have. In this way you have the best chance at getting cheap car insurance for young drivers.